Showing a downward trend for the second month in a row, the output of eight core industries narrowed down by 0.4 per cent in April. The poor performance of electricity, cement, refinery products and fertiliser sectors, strengthened the case for a rate cut by the Reserve Bank of India (RBI) during its scheduled policy review on June 2.
Coal and steel were only two sectors that saw some growth, while crude oil and natural gas also recorded lower output in April. The output had declined by 0.1 per cent in March 2015, while it had seen a growth of 5.7 per cent a year ago in April 2014.
The latest core sector data came a day ahead of the RBI's scheduled monetary policy review where the central bank is widely expected to lower the rates to further boost the investment flow and the core sector output.
The overall growth of eight core industries in the entire 2014-15 fiscal stood at 3.5 per cent against 4.2 per cent in the previous fiscal.